Find the time and amount of the final payment

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Problem 1: Find the present value on February 1 of an annuity which pays $4000 every three months for 6 years. The first payment is due on the coming April 1 and the rate of interest is 8% convertible quarterly.

Problem 2: A loan of $2150 is to be repaid by annual payments of $258 to commence at the end of the 5th year and to continue thereafter for as long as necessary. Find the time and amount of the final payment, if the final payment is to be larger than the regular payments. Assume i=5.6%

Reference no: EM132657746

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